Estates and Future Interests

Question 1

Under modern law, a conveyance from “O to A” creates which interest in A?

Answer 1

Fee Simple Absolute

Question 2

Which future interest follows a gap in possession or divests the estate of the transferor?

Answer 2

Springing Executory Interest

Question 3

What is a Springing Executory Interest?

Answer 3

A future interest that follows a gap in possession or divests the estate of the transferor.

Question 4

What is a Shifting Executory Interest?

Answer 4

A shifting executory interest does not follow a gap in possession or divest the estate of the transferor. A shifting executory interest is a future interest that divests the interest of another transferee.

Question 5

If O conveys property “to A for life, then to B; but if B predeceases A, to C,” what interest does B have?

Answer 5

Vested remainder subject to total divestment

Question 6

What is a Vested Remainder Subject to Open?

Answer 6

A vested remainder subject to open is a remainder created in a class of persons that is certain to take on the termination of the preceding estate, but is subject to diminution by reason of other persons becoming entitled to share in the remainder.

Question 7

What is an Indefeasibly Vested Remainder?

Answer 7

An indefeasibly vested remainder is a remainder that (i) can be created in and held only by an ascertained person in being, (ii) must be certain to become possessory on the termination of the prior estate, (iii) must not be subject to being defeated or divested, and (iv) must not be subject to being diminished in size.

Question 8

At common law, if O conveyed property “to A for life, then to B’s heirs” and A predeceased B, B’s heirs would have:

Answer 8

No Interest. A contingent remainder must vest prior to or upon termination of the preceding estate or it is extinguished. One cannot have heirs until death, thus if A died while B was alive, the interest would not have a destination, and would revert back to A.

Question 9

A grantor who conveys a fee simple subject to a condition subsequent retains __________.

Answer 9

A right of entry.

Question 10

The Rule Against Perpetuities provides:

Answer 10

certain interests in property are void if there is any possibility, however remote, that they may vest more than 21 years after some life in being at the creation of the interest.

Question 11

If T devises property “to B’s children,” and B has at least one child living at all relevant times, when does the class of “B’s children” close?

Answer 11

At T’s death.

Question 12

Pursuant to the rule of convenience, when the beneficiaries of an outright gift are a class, the class closes when:

Answer 12

the will becomes effective.

Question 13

At common law, a conveyance of property from O “to O and A as joint tenants with right of survivorship” creates a __________.

Answer 13

Tenancy in Common.

Question 14

What will sever a joint tenancy?

Answer 14

An inter vivos conveyance by one joint tenant.

Question 15

If A, B, and C own property as joint tenants, and A conveys his interest to D, what interests do the parties own on B’s death?

Answer 15

C owns a 2/3 interest, and D owns a 1/3 interest

Question 16

The distinguishing feature of a joint tenancy is

Answer 16

the right of survivorship. When property is held by three or more joint tenants, one joint tenant’s conveyance destroys the joint tenancy only as to that interest.

Question 17

What property interests are not subject to the Rule Against Perpetuities?

Answer 17

Future interests in the grantor (i.e., reversions, possibilities of reverter, and rights of entry) are not subject to the Rule.

Question 18

If O conveys property “to A for her support until she remarries,” what interest does A have?

Answer 18

Fee Simple Determinable.

Question 19

What is Fee Simple Determinable?

Answer 19

A fee simple determinable is an estate that automatically terminates on the happening of a stated event and reverts to the grantor. It is created by the use of durational, adverbial language, such as “for so long as,” “while,” “during,” or “until.”

Question 20

What acts will not sever a tenancy by the entirety?

Answer 20

Execution of a Creditor of one Spouse. A tenancy by the entirety is a marital estate akin to a joint tenancy between husband and wife.

Question 21

A __________ restraint provides that if the grantee attempts to transfer the property, it is surrendered to another person.

Answer 21

Forfeiture

Question 22

A disabling restraint provides that

Answer 22

any attempted transfer of the property is ineffective.

Question 23

A promissory restraint provides that

Answer 23

the grantee covenants not to transfer the property.

Question 24

For the purpose of determining the validity of interests under the Rule Against Perpetuities, when does the perpetuity period begin to run?

Answer 24

For irrevocable trusts, the perpetuities period begins to run on the date the trust is created.

Question 25

A co-tenant has the right to possess:

Answer 25

The entire estate.

Question 26

If O conveys property “to A for life, then to B’s heirs” and A predeceases B, at common law the heirs’ interest is void under the \_\_\_\_\_\_\_\_\_\_.

Answer 26

Rule of Destructibility of Contingent Remainders

Question 27

In general, a life tenant commits voluntary waste when he:

Answer 27

Consumes or exploits natural resources on the property

Question 28

What is NOT a future interest in the grantor?

Answer 28

A Remainder.

Question 29

Which interest violates the Rule Against Perpetuities and is stricken if it follows a defeasible fee and has no limit on the time within which it must vest?

Answer 29

An executory interest.

Question 30

Life tenants are obligated to make which payments on a mortgage on the land?

Answer 30

Only the interest.

Question 31

O conveys property “to charity A, but if the premises are no longer used as a museum, to charity B,” charity A has __________ and charity B has \_\_\_\_\_\_\_\_\_\_.

Answer 31

A fee simple subject to an executory interest; an executory interest.

Question 32

What unities are required to create a joint tenancy?

Answer 32

Time, Title, Interest, Possession

Question 33

In the case of a deed, the perpetuities period begins to run on the date:

Answer 33

the deed is delivered with the intent to pass title.

Question 34

A tenancy by the entirety can be terminated by:

Answer 34

Mutual Agreement of the Spouses.

Question 35

A vested remainder subject to total divestment arises when the remainderman is in existence and ascertained, but her right to possession and enjoyment is subject to:

Answer 35

being defeated by the happening of a condition subsequent.

Question 36

If O conveys property “to A for life, then to B; but if B predeceases A, to C,” what interest does C have?

Answer 36

Shifting executory interest.

Question 37

n most states, when tenants by the entirety divorce, they hold the property as \_\_\_\_\_\_\_\_\_\_.

Answer 37

Tenants in Common

Question 38

A conveyance from O “to A for life, and A covenants not to transfer her interest to anyone” contains a __________ restraint.

Answer 38

Promissory

Question 39

What interest arises when the remainderman is in existence and ascertained, but her right to possession and enjoyment is subject to being defeated by the happening of a condition subsequent?

Answer 39

Vested remainder subject to total divestment

Question 40

If O conveys property “to A, but if the premises cease to be used for recreational purposes, then to B,” what interests do the parties have in a jurisdiction that follows the common law Rule Against Perpetuities?

Answer 40

A has a fee simple absolute, and B and O have no interest

Question 41

Must a co-tenant in possession share profits gained by her personal use of the property with co-tenants out of possession?

Answer 41

No, unless there has been an ouster or agreement to the contrary.

Question 42

A grantor who conveys a fee simple determinable retains \_\_\_\_\_\_\_\_\_\_.

Answer 42

A possibility of reverter.

Question 43

Which of the following interests in property are subject to the Rule Against Perpetuities?

Answer 43

Contingent remainders, executory interests, and vested remainders subject to open

Question 44

If A, B, and C own property as joint tenants, and P obtains a money judgment against A, what interests do the parties own on B’s death?

Answer 44

A owns a 1/2 interest subject to P’s lien, and C owns a 1/2 interest

Question 45

A __________ restraint provides that any attempted transfer of the property is ineffective.

Answer 45

Disabling

Question 46

At common law, a contingent remainder must vest prior to or upon termination of the preceding estate or it is extinguished under to the \_\_\_\_\_\_\_\_\_\_.

Answer 46

Rule of Destructibility of Contingent Remainders

Question 47

A __________ restraint provides that if the grantee attempts to transfer the property, it is surrendered to another person.

Answer 47

Forfeiture

Question 48

At common law, a conveyance of property from O “to O and A as joint tenants with right of survivorship” creates a \_\_\_\_\_\_\_\_\_\_.

Answer 48

Tenancy in Common.